ANALYSIS OF LOCAL CONTENT POLICY (PTK 007 4TH REVISION) IMPLEMENTATION IN PT CHEVRON PACIFIC INDONESIA

• Main Author: M H Simanjuntak, Daniel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46888
• Institution: Institut Teknologi Bandung

The Ministry of Energy and Mineral Resources (MEMR) regulates the local content achievements in oil and gas industry in Indonesia through the use of PTK 007 4th revision. PT Chevron Pacific Indonesia (PT CPI) as one the Production Sharing Contractors (PSC), operating Rokan PSC in Riau province, must fulfill the government’s requirements in procuring materials and services including implementing the local content requirement. Inefficient implementation was discovered in PT CPI’s adoption of the local content policy. Three main gaps became apparent: unrealistic implementation roadmap, lack of standard in contractors/suppliers performance verification and monitoring, and PT CPI’s human resources limitations. To improve PT CPI’s compliance to the local content policy, improvements from within the company must be initiated. Unrealizable local content target requirements by the Ministry of MEMR is the main concern for PT CPI’s contractors/suppliers. Upon completion of a contract, post-contract verification is required to be done to verify the local content achievement throughout the duration of the contract. Lack of documentation standards by contractors/suppliers generates delay in the verification process. Post-contract verification done internally by PT CPI is also a challenge due to the limited number of certified assessors. The objective of this of this research is to discover the constraints that PT CPI face to fully comply and implement the local content policy (PTK 007 4th revision) that is required by the Ministry of Energy and Mineral Resources. Formulating recommended business solutions and implementation plan is also objectives of this research.This study uses qualitative methodology to analyze the current situation within PT CPI and formulate business solution proposal. Primary data is gathered through interview sessions with five of PT CPI’s procurement professionals. Fishbone analysis is used to find the root causes of the problem and PDCA cycle analysis is used to formulate business implementation improvements. Through the use of Fishbone and PDCA analysis, the root causes of the problem were discovered and corresponding business solutions were proposed. To resolve the problems that PT CPI faces, a market research team is recommended to be formed in order to help improve roadmap adoptability by contractors/suppliers. The market research team has a goal to analyze the current condition of PTK 007’s roadmap adoptability and formulate an optimized roadmap targets to be applicable to contractors/suppliers. A guidance program to improve contractor’s performance is also recommended as a business solution alternative. Through this guidance program, PT CPI supports contractor’s documentation standards with a goal to expedite verification processes. The last business solution alternative is the hiring of local content expert to improve verification tasks within PT CPI.